Alector, Inc.
- Open
- 1.99
- Day high
- 2.06
- Day low
- 1.99
- Prev close
- 2.01
- Volume
- 89K
- Mkt cap
- $223M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 21.4
- P/S
- 12.1
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$5K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Alector, Inc. (ALEC) is a Healthcare company listed on NASDAQ. The stock is up 42% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Alector, Inc. (ALEC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ALEC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $-0.35 | $-0.21 | +40.0% | $1M | -89.2% |
| Feb 25, 2026 | $-0.39 | $-0.34 | +12.8% | $6M | +218.6% |
| Nov 6, 2025 | $-0.42 | $-0.34 | +19.0% | $3M | +82.8% |
| Aug 7, 2025 | $-0.45 | $-0.30 | +33.3% | $8M | +180.7% |
| May 8, 2025 | $-0.44 | $-0.41 | +6.8% | $4M | -13.6% |
| Feb 26, 2025 | $-0.61 | $-0.02 | +96.7% | $54M | +165.8% |
| May 8, 2024 | $-0.48 | $-0.38 | +20.8% | $16M | +7.4% |
| Feb 27, 2024 | $-0.80 | $-0.49 | +38.8% | $15M | +57.6% |
| Aug 3, 2023 | $-0.82 | $0.02 | +102.4% | $56M | +1277.8% |
| May 4, 2023 | $-0.75 | $-0.55 | +26.7% | $17M | +107.9% |
| Feb 28, 2023 | $-0.54 | $-0.63 | -16.7% | $14M | -52.1% |
| Aug 4, 2022 | $-0.47 | $0.12 | +125.5% | $80M | +159.1% |
ALEC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 17, 2026 | Hammond Pauladirector | Grant | 9,450 | — |
| Jun 17, 2026 | SCHELLER RICHARD Hdirector | Grant | 28,700 | — |
| Jun 17, 2026 | DESOUZA ERROL Bdirector | Grant | 9,450 | — |
| Jun 17, 2026 | Altmeyer Markdirector | Grant | 9,450 | — |
| Jun 17, 2026 | Hammond Pauladirector | Grant | 28,700 | — |
| Jun 17, 2026 | LAVIGNE LOUIS J JRdirector | Grant | 9,450 | — |
| Jun 17, 2026 | Altmeyer Markdirector | Grant | 28,700 | — |
| Jun 17, 2026 | GAROFALO ELIZABETH A.director | Grant | 28,700 | — |
| Jun 17, 2026 | DESOUZA ERROL Bdirector | Grant | 28,700 | — |
| Jun 17, 2026 | Yaffe Kristinedirector | Grant | 9,450 | — |
| Jun 17, 2026 | LAVIGNE LOUIS J JRdirector | Grant | 28,700 | — |
| Jun 17, 2026 | SCHELLER RICHARD Hdirector | Grant | 9,450 | — |
| Jun 17, 2026 | Yaffe Kristinedirector | Grant | 28,700 | — |
| Jun 17, 2026 | GAROFALO ELIZABETH A.director | Grant | 9,450 | — |
| Jun 3, 2026 | SCHELLER RICHARD Hdirector | Grant | 10,833 | — |
Source: ALEC SEC Form 4 filings, latest Jun 17, 2026. For informational purposes only — not investment advice.
See the full ALEC insider & 13F page →Alector, Inc. company profile
Overview
Alector, Inc. (NASDAQ:ALEC) is a clinical-stage biopharmaceutical company founded in 2013 and headquartered in South San Francisco, California. The company went public in February 2019 and focuses on developing therapies for neurodegenerative diseases including Alzheimer's disease, frontotemporal dementia, Parkinson's disease, and amyotrophic lateral sclerosis. Alector has built its research around an innovative approach called immuno-neurology, which targets the immune system's role in brain health, particularly focusing on microglial cells that serve as the brain's immune cells. The company has established strategic partnerships with major pharmaceutical companies including GlaxoSmithKline and AbbVie to advance its pipeline of potential treatments.
Business
Alector operates in the biotechnology sector, specifically developing treatments for neurodegenerative diseases that affect millions of people worldwide. Neurodegenerative diseases are conditions where brain cells progressively deteriorate and die, leading to cognitive decline, memory loss, and motor dysfunction. These include Alzheimer's disease (the most common form of dementia), frontotemporal dementia (FTD), Parkinson's disease, and amyotrophic lateral sclerosis (ALS or Lou Gehrig's disease). The company's approach centers on immuno-neurology, a relatively novel field that examines how the brain's immune system contributes to neurodegeneration. Traditional drug development for these diseases has largely failed, with most approaches focusing on removing toxic protein deposits like amyloid plaques in Alzheimer's. Alector instead targets microglial cells, which are specialized immune cells in the brain that normally clear cellular debris and maintain brain health but become dysfunctional in neurodegenerative diseases. Alector's core clinical programs include: 1. Latozinemab (AL001) - A monoclonal antibody currently in Phase 3 trials for frontotemporal dementia. This drug works by elevating levels of progranulin, a protein that supports neuronal survival and microglial function. When progranulin levels are low due to genetic mutations, it leads to FTD. This program has received FDA Breakthrough Therapy designation. 2. AL002 - An antibody targeting TREM2 (Triggering Receptor Expressed on Myeloid cells 2) in Phase 2 trials for Alzheimer's disease. TREM2 is a receptor on microglial cells that helps them function properly. The drug aims to activate these cells to better clear toxic proteins and support brain health. 3. AL101 - Another progranulin-elevating therapy in Phase 2 trials for early Alzheimer's disease, developed in partnership with GlaxoSmithKline. 4. Alector Brain Carrier (ABC) Platform - A proprietary technology designed to overcome the blood-brain barrier, which normally prevents most drugs from reaching the brain. This platform can potentially deliver various types of therapeutics including antibodies, enzymes, and genetic medicines to the brain. The company generates revenue primarily through collaboration agreements with pharmaceutical partners, with collaboration revenue representing virtually all of its income. Research and development expenses constitute the majority of operating costs as the company advances multiple clinical trials.
Revenue model
Alector's business model is built around partnership-driven drug development, typical of many clinical-stage biotechnology companies. The company generates revenue primarily through collaboration agreements with large pharmaceutical partners rather than direct product sales, as none of its therapies have yet received regulatory approval. The primary revenue streams include upfront payments, milestone payments tied to clinical and regulatory achievements, and potential future royalties on commercialized products. In 2024, Alector generated $100.6 million in collaboration revenue, primarily from its partnerships with GlaxoSmithKline (for AL001 and AL101) and AbbVie (for AL002). These partnerships provide crucial funding for expensive clinical trials while sharing both the risks and potential rewards of drug development. Key paying partners include major pharmaceutical companies that license Alector's drug candidates and provide funding for development in exchange for commercialization rights in certain territories. GlaxoSmithKline has rights to latozinemab and AL101 globally, while AbbVie has an option to license AL002 following Phase 2 trial results. Several factors significantly impact Alector's financial margins and business prospects: Positive margin factors include successful clinical trial results that trigger milestone payments, FDA breakthrough designations that can accelerate development timelines and reduce costs, and the potential for additional partnership deals that provide upfront funding. The company's ABC blood-brain barrier technology platform also represents a valuable asset that could generate licensing revenue from multiple partners. Negative margin factors include the inherently high costs and risks of clinical trials, particularly Phase 3 studies which can cost hundreds of millions of dollars. Failed trials not only eliminate potential milestone payments but also require the company to fund continued operations through cash reserves or additional financing. The competitive landscape in neurodegeneration is intensifying, with major pharmaceutical companies and well-funded biotechs pursuing similar targets. Additionally, the company faces regulatory risks, as FDA approval requirements for neurodegeneration drugs have become increasingly stringent following several high-profile failures in the field. The company's cash burn rate of approximately $230 million annually means it must carefully manage resources and potentially raise additional capital to fund operations through key clinical readouts expected in 2025-2026.
Competitive moat
Alector's competitive moat is moderate but potentially strengthening, built primarily around its scientific expertise in immuno-neurology and proprietary technology platforms rather than traditional barriers like patents or network effects. The company's primary moat stems from its deep scientific understanding of microglial biology and neuroinflammation, an area where relatively few companies have developed significant expertise. Alector's founders and scientific team have published extensively in this field, giving them insights that are difficult to replicate quickly. The company's focus on genetically validated targets like progranulin and TREM2 provides some protection, as these approaches are based on human genetic evidence rather than purely preclinical models. The Alector Brain Carrier (ABC) platform represents a potentially significant technical moat. Blood-brain barrier penetration remains one of the most challenging aspects of neurological drug development, with most therapeutics unable to reach effective concentrations in the brain. If proven effective, this platform could provide sustainable competitive advantages across multiple therapeutic areas and partnership opportunities. However, Alector faces substantial competitive threats. Large pharmaceutical companies like Roche, Biogen, and Eli Lilly have massive resources and are actively pursuing similar targets in neurodegeneration. Some competitors have more advanced programs - for example, Roche's gantenerumab (an anti-amyloid antibody) and several other TREM2-targeting programs are in development. The recent FDA approvals of Biogen's Aduhelm and Eisai's Leqembi for Alzheimer's disease, despite their modest efficacy, have validated the regulatory pathway but also intensified competition. The company's partnerships with GSK and AbbVie provide some competitive protection by aligning Alector with well-resourced partners, but these same partnerships limit Alector's control over key programs and reduce potential future economics. Additionally, the fundamental challenge remains that neurodegeneration drug development has an exceptionally high failure rate, with even scientifically sound approaches often failing in late-stage trials due to the complexity of these diseases. Overall, while Alector has built meaningful scientific and technological advantages, the competitive landscape is intensifying and ultimate success will depend on clinical execution rather than sustainable barriers to entry.
Risks & safety
Alector presents a moderate margin of safety for a clinical-stage biotech, with adequate near-term liquidity but significant execution risks. **Cash Position and Runway:** • Cash and short-term investments of $413.4 million as of December 2024 • Annual cash burn of approximately $230 million based on 2024 operating cash flow • Estimated runway through 2026, covering key clinical readouts • Additional $75 million raised in January 2024 follow-on financing **Debt and Solvency:** • Debt-to-equity ratio of 0.34, indicating moderate leverage • Current ratio of 3.4x demonstrates strong short-term liquidity • No immediate solvency concerns given cash position and partnership funding **Valuation Metrics:** • Trading at significant discount to book value (P/B ratio of 1.4x) • Negative earnings make P/E ratios not meaningful • Enterprise value reflects substantial discount to cash and partnership values • Market cap of approximately $149 million appears to discount high probability of failure **Other Considerations:** • Partnership milestone payments could provide additional funding runway • Potential AbbVie opt-in payment for AL002 expected in early 2025 • High clinical trial failure rates in neurodegeneration create substantial execution risk • Dilution risk from future equity raises if trials extend beyond current cash runway
Recent development
Over the past few years, Alector has significantly advanced its clinical pipeline while building a proprietary technology platform for future growth. The company's most notable achievement has been advancing latozinemab into a pivotal Phase 3 trial (INFRONT-3) for frontotemporal dementia, with the FDA granting Breakthrough Therapy designation in recognition of the unmet medical need and promising early data. This program represents the company's most advanced asset and potential first commercial opportunity, with topline data expected in late 2025 or early 2026. The company has also made substantial progress with AL002, its TREM2-targeting antibody for Alzheimer's disease. The INVOKE-2 Phase 2 trial completed enrollment of 381 patients with early Alzheimer's disease, and data readout was expected in Q4 2024. This program operates under a partnership with AbbVie, which has an option to license the drug following Phase 2 results, potentially providing significant milestone payments and validation. A key strategic development has been the introduction of the Alector Brain Carrier (ABC) platform, a proprietary blood-brain barrier technology that could transform the company's long-term prospects. This platform targets transferrin receptor and CD98 heavy chain to transport various therapeutic molecules across the blood-brain barrier, addressing one of the fundamental challenges in neurological drug development. The company is advancing multiple ABC-enabled programs including anti-amyloid beta antibodies (ADP037-ABC) and enzyme replacement therapies for Parkinson's disease (ADP050-ABC). Alector has also expanded its pipeline with AL101 in partnership with GlaxoSmithKline, targeting early Alzheimer's disease through progranulin elevation. The PROGRESS-AD Phase 2 trial is ongoing with enrollment expected to complete by mid-2025. Additionally, the company is developing innovative approaches including tau-targeting programs using both antibody and siRNA methodologies, as well as a Reelin modulator for Alzheimer's treatment. The strategic focus has evolved toward building a more diversified pipeline while maintaining its core competency in immuno-neurology. The company has prioritized programs with strong genetic validation and has been selective in advancing only the most promising candidates to reduce cash burn and focus resources on the highest-probability opportunities.
ALEC company profile · for informational purposes only — not investment advice.
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